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KUALA LUMPUR, March 31 — Headline inflation turned slightly positive, rising to 0.1 per cent in February 2021, versus a contraction of 0.2 per cent in January, driven by higher domestic retail fuel prices.
Bank Negara Malaysia (BNM) said underlying inflation, as measured by core inflation, remained stable at 0.7 per cent.
As for exports, it grew by 6.6 per cent in January 2021 compared with 10.8 per cent in December 2020, driven primarily by robust manufactured exports.
“By destination, the expansion was supported by exports to Singapore, the United States, China and Vietnam and looking ahead, exports are expected to be supported by the rebound in global growth, continued demand for electronics exports and higher commodity prices,” it said in a statement.
Nonetheless, the central bank reiterated that the trade outlook remains contingent on the path of the Covid-19 pandemic.
Meanwhile, net financing expanded by 3.9 per cent amid lower outstanding corporate bond growth, with February (4.5 per cent), January (6.3 per cent)), while outstanding loan growth was sustained in February (3.7 per cent) and January (3.8 per cent).
“Outstanding household loans grew by 5.1 per cent for February 2021 versus January (4.9 per cent) supported by loans for the purchase of cars and residential properties.
“Outstanding business loans rose by 1.0 per cent (January: 1.5 per cent) as loan repayment growth outpaced that of disbursements. In level terms, both disbursements (February: RM64.9 billion, January: RM70.0 billion) and repayments (February: RM66.0 billion, January: RM69.1 billion) were lower in February, reflecting the fewer business days,” it said.
For the whole of February, the ringgit and FBM KLCI remained relatively unchanged, increasing by 0.1 per cent and 0.7 per cent, respectively.
“Ten-year MGS yields, however, increased by 38.2 basis points following the steepening in the US Treasury yield curve during the month,” it said.
As for banks’ excess capital buffers, it amounted to RM126.3 billion as at February.
Overall gross and net impaired loan ratios were sustained at 1.6 per cent and 1.0 per cent respectively, as banks continued to facilitate repayment assistance to borrowers facing temporary financial difficulties. — Bernama